Ideally, many people are interested in getting paid from what they do involving trading as a number of traders has been known to get rich. It may be possible to earn a living through trading, but this is not without effort, discipline and overall knowledge of risk taking.
To start with, trading requires knowledge about the markets with a view to forming a strong opinion of them. This entails understanding how to operate organizations such as charts and trends in the economy besides knowing various indicators. This is because competition in markets is ever encouraging and comes with changes that may require learning to adjust. Education has got many forms which include passing through academic classes, reading books, and learning new developments on the financial markets.
Another crucial element that lie in the success of the great coaching staffs is discipline. The straightforward living of a great trade plan and adhering to it is important for traders. In this plan, there should be specific outlines of how the entry and exit points will be made accompanied by methods of risk management. Patience is crucial, as the emotions make one make bad decisions and in turn suffer losses. Staying disciplined is another good practice in that it can assist in keeping away from the mistake of profit chasing.
Prudency is arguably the best aspect of trading that could earn any trader a good reputation in the market. The general rule of the thumb is no trader should invest more than 5% of his/her account balance in a single trade. Management of risk involves diversification of investments and placement of stop loss orders in order to minimize the level of losses made. It is widely believed that the Forex market is one of the most unpredictable and vulnerable markets; and that even professional traders can easily get buried under debts if they do not implement correct Risk Management strategies.
Nevertheless, let it be mentioned that being paid for trading is possible but at the same time, one should bear in mind that trading is closely connected with risk. Some can be quite unpredictable, demanding both time and energy; it may be rather stressful. Most of the traders work at other places and trade only part-time or allocate their money to trading due to the high risk of capital involved in trading.
All in all, it could be said that it is possible but rather difficult to earn for a living through trading. It entails a lot of knowledge, discipline and is a sensitive affair to risks . It must be cautiously and patiently addressed by those who want to trade while being ready that even the bestategies could producemistakes but they have to be learned as well.